Page 179 - ADVANCED TAXATION - Day 1 Slides

The Influence Of VAT On Income Tax Calculations

 VAT cannot be studied in isolation, because it

influences the calculations involved in income tax.

 The calculation of the taxable income of an

enterprise that is registered for VAT purposes

must exclude VAT. It will include VAT where the

input tax was denied.

 Output tax on fringe benefits is deductible for

income tax purposes.